Firm Says Commercial Construction Costs Falling

New York, NY, March 11, 2009--Turner Construction Company's First Quarter 2009 Building Cost Index has decreased 5.77% from the Fourth Quarter 2008.

The index projects domestic commercial construction costs.

The First Quarter 2009 Index number is 866, down from 919 in the Fourth Quarter 2008. Since the First Quarter 2008, construction costs have decreased by 2.59 percent.

Karl F. Almstead, the Turner vice president responsible for the Turner Building Cost Index said, "The cost of construction has come down as construction spending has decreased and competition in the industry has increased. However, construction activity in the education, healthcare and public sectors continue to show strength and increased investment in green buildings across all segments are sources of optimism as potential beneficiaries of the economic stimulus legislation."

Almstead said that in the second half of 2008 commodity and material prices fell from their recent highs and material prices are stabilizing as a result of production cut-backs and inventory reductions.

However, labor costs are countering the downward cost trend with labor wage settlement increases in 2008, reflecting the demand prior to the market contraction in the second half of the year," said Almstead.